Falling Prices Threaten Fragile Growth, IMF Head Says

Lagarde Says Growth 'Stuck in Low Gear,' Too Fragile

WASHINGTON—The head of the International Monetary Fund on Wednesday warned that deflation in advanced economies threatens to derail a strengthening, but still fragile global recovery this year, requiring central banks in the U.S. and Europe to keep easy money flowing.

"With inflation running below many central banks' targets, we see rising risks of deflation, which could prove disastrous for the recovery," IMF Managing...